Responsibility Cost Control System Establishment In E Company Shenyang Branch

This paper is to make an analysis of the problems occurring in the process of the cost control and establish a responsibility cost control system for E Company Shenyang Branch, on basis of the current cost controlling process of E company Shenyang Branch. According to the latest study within China and oversea on subject Responsibility Cost Management and Budget Management E Company Shenyang Branch of Mainland China, thinking of the industry features as well as the present situation of the E Company Shenyang Branch. At the very beginning of the paper, introduces the present situation of the research background within the domestic and foreign, summarizes the correlation theories of responsibility cost management. Then elaborated the related knowledge of responsibility cost management, introduces the concept and features of responsibility cost center cost center, the principle of responsibility division and cost center division. Based on these theories, divided E Company Shenyang Branch into 5 cost centers according to functional departments. All the E Company Shenyang Branch’s controllable costs are dividing into each responsibility unit, so that each unit takes responsible for there own budgeting, cost accounting and responsibility cost control of the entire kinds of responsibility cost of the department. Then the article introduces the concept and characteristics of cost budget, cost accounting, the whole process control and combined with E Company for each cost center. Introduce the methods of budget target decision, the methods of accounting, accounting mode and the concrete implementation scheme of cost control, so as to realize the responsibility of cost control in advance. Achievement assessment on responsibility cost control is the last step in the control system, the scoring results of KPI index shows the result of responsibility cost management and control in budget, controlling process and cost accounting incurred in the business management of company. Regularly evaluation of the responsibility cost management achievements including appropriate incentives and incentive mechanism. This helps the company to inspire all employees to participate in cost control.